Micron Technology: Leveraging a Structurally Tightening DRAM Market and AI-Driven Demand Upswing

Robert W. Baird analyst Tristan Gerra has maintained their bullish stance on MU stock, giving a Buy rating yesterday.

Tristan Gerra has given his Buy rating due to a combination of factors tied to a structurally tightening DRAM market and Micron’s leverage to that trend. He expects DRAM prices to rise sharply over the next few quarters while industry bit supply growth in 2027 remains well below end demand, especially as most new capacity is directed toward high‑bandwidth memory used in AI accelerators.

Gerra also highlights robust medium‑term demand from hyperscale data centers, with AI workloads driving a rising share of total DRAM consumption and encouraging inventory builds at key customers such as Microsoft and Amazon. Against this backdrop, he projects substantial expansion in Micron’s gross margins across DDR5, NAND, and HBM products and lifts his EPS forecasts to $60 for FY26 and $100 for FY27, supporting an Outperform view on the stock.

In another report released yesterday, TD Cowen also assigned a Buy rating to the stock with a $500.00 price target.